Knowledge-based simulation and analysis of supply chain performance

Although various supply chain strategies such as vendor managed inventory (VMI) are used for keeping low inventory and reducing cost in supply chain management, most enterprises lack an integrated simulation system to mimic the behaviour and performance of supply chain partners so as to select the appropriate strategy for implementation. This paper presents a knowledge-based simulation approach for simulating the effect of downstream and upstream operations in supply chain. Based on the simulation result, the performance of supply chain partners can be analysed, evaluated and predicted. With the use of artificial intelligent (AI) techniques, the knowledge-based simulation platform (KBSP) can accumulate the successful experience of the enterprises in formulating and implementing supply chain strategies. The potential benefits of KBSP include the provision of guidance, solution and simulation environment for enterprises to reduce risks for their supply chain operations.

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